Did you know, accumulated the processing of each invoice may take as much as 16.3 days? More than 16 days! This is mainly due to all the manual work that goes into the processing and reporting of each invoice.
This article is going to focus on the benefits of using a digitally connected invoicing solution and how you can incorporate it as best as possible in your business. Connecting project invoicing with resources and reporting can significantly improve efficiency by automating and keeping essential files and data linked and organized in your business. It's no wonder that automating your invoicing process, saves you time. However, it also creates an open flow of data by connecting with resource and project management systems to ensure profitable projects. Mostly, you gain a one-truth perspective on what's going on in your organization.
Here, we will go through some of the major benefits related to connecting project invoicing with project and resource management.
Statistics show that:
- Manually processing of invoices may take up to 16.3 days on average.
- 3.6% of invoices have typos.
- On average, an error costs 53.50 USD to correct.
- The average cost of manually processing an invoice is 30 USD per invoice.
- Compared to an automatically generated invoice of 3.50 USD per invoice.
- An automated approach can save you up to 20 times the costs of the manual process.
After considering these facts, a digitally connected system may be just what you need. Tracking invoices, statuses of payments, outstanding sums, and how much is at risk? Modern systems scan invoices and send them to the right department, automatically. Having an integrated system can help to maximize efficiency and profitability within your business. Forecast connects with your Xero accounting system, to bring crucial information and data directly into your projects. This enables you to follow every project and invoice and always know the current status of each incoming payment.
If you're still sending invoices by physical mail, you have some additional costs to save by using a connected digital invoicing tool. You can save on paper, on postage, on ink, on management, on archiving, and on your time. Moreover, by keeping your invoices in a digital environment, online, you at the same time limit the risk of your mail getting lost, getting delayed, or simply forgotten about. With a digital solution, you can easily track your invoice from being sent, to received, and even see if the recipient has opened and engaged with the invoice, which leads us on to the next benefit.
Being able to automate processes is a huge benefit. You can keep all of your invoices saved and secure in your digital systems, always accessible with the click of a button. You can set up automated reminders, "Thank You"-notes, etc., and tracking of your invoices as mentioned earlier. Likewise, by using an online accounting system you can effortlessly connect with other third-party apps to sync data and do the magic.
One great example is linking with a resource- and project management tool. This can automatically sync the financial data from your projects into your invoicing and accounting system, e.g., Xero. Automatically setup an invoice for you to send to your client within a few minutes. The revenue and costs go straight into your reports - letting you move onto other work.
Keep a Simple and Aligned Layout
Using a digital invoicing tool you can ensure that all of the invoices align with your overall marketing and communications strategy. Branding, tone of voice, graphics, etc. is all taken into account. You can have a clearly defined process of every communication point between you and your customer.
Bring your Data to Other Services
As we've touched a bit on earlier, having your data stored digitally, lets you easily bring the data with you to other services if you wish so. Depending on your choice of platforms, you can often connect with a wide variety of services, and thereby automate processes and get a broader perspective based on all of your collected data. It also allows you to migrate to another platform if you ever have the desire to do that. With an open API and exporting tools, your data is truly yours.
Keep Important Documents Saved and Secure
Simply by keeping your documents digitally, you save yourself a lot of time and physical space, which both mean reduction of costs. I think we've all been in that situation where we just can't find that one document we're looking for. And, physically there's just no simple way to find it, other than to just look for it. Digitally though, you're almost always able to do an intelligent search inquiry to help find what you're looking for. Digital allows you to search and organize your files, and easily share and collaborate with others online if you need.
Increased Productivity and Efficiency
Linked to the previous mentioned benefits, keeping your data digitally saves you both time and effort, and makes you able to automate much of the work you previously had to do manually. Ultimately, freeing time for you to do all the fun stuff instead.
Better Perspective on your Financial Situation
Integrating all the data in your organization and projects you can get automated real-time reports on the current situation. Some systems even bring you a forecast of the future, an estimate of how many resources you need to allocate to each task, milestone and project, and thereby do a qualified estimate of your financial future and status.
Built-in Payment Service Provider and Processing of Received Payments
How does your client actually make the payment? Is it easy and effortless for them? And, how's the process after you've received the payment? Or, in the case that you do not receive the payment; what is the process then? Wouldn't it be awesome if you could automate a big part part of the processes surrounding payment?
Often billing and accounting systems can also take care of big parts of the management process concerning the actual transaction. Simply, by letting your clients do the payment online, you both save your own and your client's time. Your client can easily pay using their credit card, bank account or mobile, while you at the same time get the benefit of intelligent tracking and management of the data related to the transaction.
Now, if you can relate to some of these points and feel interested in knowing more; we have a third article ready for you, right here. This article is explaining exactly how you can get started with Xero and Forecast, what you have to do, and how the integration will help you in your daily workflow.